Bazzo at Work
By Anthony J. Bazzo
New York’s unemployed has reached record levels, according to a notice I received from the New York State Department of Labor. New York does not have the money to pay these people. So it has to borrow the money from the Federal Unemployment Trust Fund (UI). Since 2009 the amount borrowed is in excess of 4 billion dollars. Every year New York must pay back to the federal government 102 million dollars in interest by 09/30. They do this by assessing New York businesses an Interest Assessment Surcharge (IAS) of 0.15% of taxable wages per employee to a maximum of $12.75 per employee. Remember this payment is only for the interest, the balance remains untouched.
The opening line in this notice states that the reason for this record level of unemployed workers is the national recession. Bah-humbug! The actual reason for New York’s record unemployment is New York’s anti-business economic policies. As there are 49 other states suffering through the national anti-business climate, yet many have lower unemployment levels than New York, per-capita. So it must be these other states have policies that encourage private sector growth.
It should come as no surprise that states that have more liberal economic policies: the redistribution of wealth, that punish success, that businesses who have the nerve to make a profit on their investments must be treated a criminal entities are the ones going broke.
In New York, the mantra being they must pay their fair share. The mantra being that businesses are started to create employment and pay health and retirement benefits, with all profits being property of the state. The mantra being that government can never do with less. What ever we pay ourselves and public workers both in pay, healthcare and pension is carved in stone as the least amount and when you are not looking, we will try to increase these levels of payment. These have lead to New York’s biggest export, mid-level positions as business move them to more business friendly state.
New York’s continued answer is to geld businesses rather than create a climate where new businesses can open and succeed, there-bye increasing employment and actual dollars to the state. To date not one unfunded mandate on local governments and school districts have been removed that would actually lower the costs and in turn property and school taxes. In fact there are bills passed this legislative session that increase these costs awaiting the Governor’s signature. Don’t tell me about property tax caps as they exempt pensions and litigation. Don’t tell me about consolidation as that exempts county governments and school districts.
The biggest hurdle to lower unemployment is this continued resistance to our ability to harness our natural recourses. The states that have made it easier to harness their natural recourses have seen record levels of taxes flowing to their government coffers, record levels of employment. No, it is not national policies that hinder New York, it is state policy. This is my opinion, you may beg to differ.
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